Telecom policy shouldn't hurt Indo-China relations.

NEW DELHI: The commerce ministry has told the telecom department that security parameters in the new communications equipment procurement policy should not impact relations between India and China. ET has learnt that the commerce ministry has sent a communication to the Department of Telecom’s (DoT’s) investment promotion cell that security regulations in the new-look telecom equipment procurement policy ‘should not rock the boat, but lend a helping hand’.

“We’ve explained to DoT that the commerce ministry’s intention is not to rock the boat but to lend a helping hand to the Chinese side in enhancing bilateral trade prospects. During the meetings of the joint working group (JWG) and the joint task force (JTF), this is the message we wish to communicate to China,” said a senior bureaucrat in the commerce ministry.

Contacted on this issue, another senior commerce ministry official in the South Asia foreign trade wing said: “We’ve sought clarity from DoT on the new security parameters with regard to future procurement of telecom equipment from the Chinese vendors. We need to communicate this to the Chinese side during the next round of meetings of JWG and JTF where all Sino-Indian trade issues will be discussed.”

The internal communication from the commerce ministry comes on the eve of the Chinese ambassador’s Zhang Yan’s meeting with the home secretary GK Pallai on Thursday. Senior executives from China’s leading telecom equipment makers are tipped to accompany the Chinese ambassador to this meeting.

The commerce ministry, in its communication to DoT, has added that it had received a note from the Chinese Embassy “indicating concern about the new procurement policy regulations”. It has specifically asked DoT to clear the air on all the ‘salient features’ of the new security policy.

While the Centre claims there is no blanket ban on import of telecom equipment and networks from China, the likes of Huawei and ZTE have pointed out that the communications ministry has not approved any contracts that Indian operators have signed since February 18. Documents available with ET show that the Centre has rejected a total of 109 equipment contracts signed by local firms like Uninor, Tata Communications, Airtel, Idea, Spice, Vodafone and Aircel with Chinese vendors since February. Top executives of both Huawei and ZTE are currently in India to meet home, communication, commerce and telecom department executives.

As reported earlier by ET, the DoT has washed its hands off the issue and asked the Prime Minister’s Office to take a final call on the matter. The PMO had sought its comments after the Chinese Embassy wrote to the Prime Minister seeking clarity on India’s stance in procuring telecom equipment from abroad. DoT has also told the PMO that it was not responsible for Indian government not approving any contracts that operators here have placed with Chinese vendors since February 18. The DoT has said that deals were rejected by intelligence agencies — IB and RAW.

Source : The Economic Times